Direct Burden – those employer costs that hit the job directly from payroll processing, such as FUTA, FICA, Fringes, SUTA, and Worker’s Comp.
Indirect Burden – those employer costs that are not directly part of labor and the payroll process. This can include uniforms, vehicles, insurance, office employees, etc.
Statutory Burden – Burden/Withholding required by law. For the Employer this is FICA, FUTA, SUTA, Worker’s Comp and possibly Disability Insurance. For the Employee these costs include FICA, Federal Withholding, State Withholding, Locality taxes, and possibly Disability Insurance and Worker’s Comp.
PR Redirection – Coins ERP+ costs all labor and burden directly to the job. Many clients want the burden broken out from job costs, and posted separately into one or more separate general ledger accounts or jobs. This can be accomplished through
PR redirection, which allows the user to move elements of labor burden such as taxes/insurance, worker’s comp, and fringes either to a different job/phase/cost code or directly to general ledger accounts. Often these costs are replaced with an Allocation.
Allocations - used to cost indirect burden to jobs. These allocations can be a dollar/hour amount or a percentage. For each hour an employee works, designated jobs will be debited with an amount per hour. Commonly used for direct jobs only to costs consumables, insurance, uniforms, etc. – any costs that users want to send to the jobs that are not captured through direct labor and burden.
Additional Postings – allows the user to direct the debit (expense) side of the burdens and other costs away from the general ledger account associated with the timecard’s job/cost code and to separate general ledger accounts. Often used to create a detailed post for labor, capturing labor related expenses in separate GL accounts for financial reporting.
Standard Labor Rates – allows for a “masked” rate for employees. Employees are grouped together based on certain criteria such as job title (i.e. Project Managers). A single rate is assigned and used as the hourly charge rate for the job. Example – all employees designated with the Standard Labor Rate Group PM will be costed to jobs at the rate of $150/hour, which includes all burdens. The credit side of the Standard Labor Rates will go to a Contra Account, and the actual wages for each employee will be sent to an expense GL account or job. Periodically the masked rates should be “trued up” to the actual wages paid. Standard Labor Rates can be based on the Standard Labor Rate Group, Job Type, etc. or can be employee specific.
Prevailing Wage/Davis Bacon Jobs – those public jobs for which employers must pay a specific “going” rate for the area for any employee who works on a Prevailing Wage job. There is a rate and a fringe, and combined they create a “Package”, based on employee trade and skill level. Employers may deduct certain ER paid benefits from the rate paid to employees; these deductions do vary by state.
Worker’s Comp – Insurance required to be carried for all employees, every employee must be assigned a worker’s comp code, or it must be set up on and come from the job file. No payroll transaction can be completed without a worker’s comp code on file. The majority of states this is an employer expense, but some states, such as Washington, the employee pays some of the cost. Disability Insurance is required in only a few states such as CA and NY.
Automatic Overtime Processing – Allows a company to enter all hours as regular hours, and then the system will calculate the overtime based on set rules such as any hours over 40 per pay period. Either the overtime will then be pro-rated and spread over all jobs that pay period, or all overtime will go to the last job of the pay period. Set up based on earnings categories and employees. Can be overridden at the timecard level.
Blended Overtime - defined as overtime pay as a rate derived by computing total compensation during the workweek for all rates, divided by the total number of hours worked on all timecard. The employee's regular hourly rate of pay is determined by adding all REGULAR earnings for the week and dividing by the total hours worked at both jobs. Set up in Tax Authority at the state level and on Earnings Categories, must be run in conjunction with Automatic Overtime Processing.
Allow Entry of Overtime and Double-time rates - allows companies to enter an overtime and/or double time rate not based on the multiplier found in the corresponding earnings category.
Based Fiscal Period on Timecard Entry Date - Rather than all costs being posted to a single fiscal period set in period maintenance, costs will go to the fiscal period of the timecard entry. Often used for split weeks in which the fiscal month changes in the middle of a pay period.